Standard & Poor's Ratings Services has lowered its issue ratings on Kazakhstan-based Alliance Bank JSC's senior unsecured debt to 'D' from 'CC' and the ratings on the subordinated debt to 'D' from 'C', S&P reported on March, 28. The ratings on the bank remain at 'D/D' (default).

The rating actions follow Alliance Bank's nonpayment on March 26, 2014, of a coupon payment on its senior discount Kazakhstani tenge (KZT) and U.S. dollar notes, due in 2017; the senior par KZT and U.S. dollar notes, due 2020; and the subordinated KZT notes, due in 2030, in line with our expectations, the report said.

S&P in its report mentioned that Alliance Bank had already missed a payment due to noteholders on December, 26, 2013. Then on January, 23, 2014, the bank announced its intention to restructure its outstanding senior and subordinated bonds. A week later, on January, 31, 2014, Alliance Bank announced the Board of Directors' decision to start restructuring the bank. "We subsequently lowered our counterparty credit ratings on the bank to 'D'," S&P said.

S&P expects to review the ratings on the bank and its debt instruments after the bank completes its restructuring and publishes quarterly financial results. According to the bank, it plans to complete the restructuring by the middle of this year.